Shell could abandon Arctic after this season


#141

[QUOTE=c.captain;173445]why do I feel the need to go out and by a can of insecticide?[/QUOTE]

Why?? You got cockroaches??


#142

[QUOTE=ombugge;173457]Why?? You got cockroaches??[/QUOTE]

oh man…ever since October first, the house is just infested with them


#143

[QUOTE=c.captain;173459]oh man…ever since October first, the house is just infested with them[/QUOTE]

Try Shell-tox, It’s a popular brand here in Singapore.


#144

so just as one was beginning to think the idea of further exploration in the Alaskan Arctic was dead and buried…it rises back up like a zombie!

[B]Shell Seeks to Preserve U.S. Drilling Rights in Arctic Ocean[/B]

December 16, 2015

By Jennifer A. Dlouhy

(Bloomberg) — Royal Dutch Shell Plc is fighting to preserve U.S. drilling rights in Arctic waters three months after halting exploration indefinitely there because it failed to find meaningful oil or natural gas deposits.

Europe’s largest oil company filed a notice of appeal Tuesday challenging the U.S. Interior Department’s Oct. 29 rejection of the company’s requests to stop the clock on Arctic oil and gas leases that otherwise expire between 2017 and 2020. The dispute is expected to undergo an administrative review by the Interior Board of Land Appeals, possibly delaying a final judgment until after a new U.S. president takes office.

“We believe suspensions are warranted for reasons outlined in our original request,” Shell spokesman Curtis Smith said. “The appeal does not affect our recent decision to stop exploration offshore Alaska for the foreseeable future.”

Shell’s request comes as other companies have abandoned Arctic oil exploration that is bitterly opposed by Greenpeace, Oceana, Sierra Club and other environmental groups that say the drilling risks damaging a fragile ecosystem. The Obama administration also has backed away from selling new leases and canceled two planned auctions, citing low industry interest.

Shell said in October it was considering options “to protect the remaining value of our assets and leases” in the Chukchi and Beaufort seas north of Alaska. Chief Executive Officer Ben van Beurden told reporters that Shell has other prospects in the region, though disappointing results at a critical test well condemned the company’s Burger project, a Chukchi Sea site where it drilled for oil last summer.

Statoil, ConocoPhillips

Norwegian oil company Statoil ASA last month said it would abandon 16 solely held leases in the U.S. Arctic and relinquish its stake in 50 others it held in partnership with ConocoPhillips.

ConocoPhillips, meanwhile, has asked the Interior Board of Land Appeals to consider suspending its own leases– and effectively extend their life — after the agency’s Bureau of Safety and Environmental Enforcement rejected the request. That appeal is stayed while settlement talks are under way.

In general, leases expire at the end of their terms unless operators are “conducting operations” such as drilling, reworking wells or producing oil and gas. Federal law does not give the Interior Department authority to issue blanket extensions and requires companies to lay out a specific plan for drilling and developing leased acreage in order to get more time.

Rules & Regulations

Shell argued in its 2014 request that “circumstances beyond its control” prevented exploratory drilling on its leases, citing regulations that restrict operations, the limited availability of Arctic-viable rigs and uncertainty about new federal rules for drilling in the region. In denying Shell’s request for more time, the safety bureau said the company should have anticipated “the rigorous regulatory environment” governing exploratory oil drilling in the Arctic.

“Shell bought their leases under certain conditions, and they knew they had 10 years,” said Susan Murray, a deputy vice president of the conservation group Oceana. “For them to try to change that mid-game is not fair play.”

Holding on to the territory is not without costs. Companies pay escalating annual rents for their offshore oil and gas leases. An analysis by Oceana suggests ConocoPhillips would have to pay an estimated $9.6 million between now and May 1, 2020, to hold on to its 61 leases in the Chukchi Sea. For Shell, which has 275 Chukchi Sea leases, the tab would be about $43 million. The estimates do not account for small variations tied to different effective dates for some leases.

‘Limited Places’

By holding on to its leases and fighting to extend them, Shell is seeking to preserve its options for the future in an area estimated to hold 27 billion barrels of oil and 132 trillion cubic feet of natural gas.

“There are limited numbers of places in the world left to drill, and as those get smaller and smaller, companies are going to try to jump on the paces that have the potential,” Murray said. “That an oil company would want to retain the option to pursue that is not unheard of.”

With Statoil’s exit, seven companies now hold drilling rights in the Chukchi Sea, including Eni Petroleum Co., Iona Energy Co., OOGC America LLC and Repsol SA. Shell is the only one to have actively explored its holdings there, by drilling the initial part of a well in 2012 and boring another well last summer.

Shell’s recent Arctic exploration used floating rigs 70 miles off the coast of Alaska in the Chukchi Sea. The company’s holdings also include tracts in the neighboring Beaufort Sea, where energy companies have relied mostly on man-made islands to hunt for oil and gas reserves and produce them. Hilcorp Alaska LLC is asking federal regulators for permission to build a 23- acre gravel island in the Beaufort Sea and use it to support drilling five or more wells.

and just when I was prepared to offer ECO $1500 to buy the AIVIQ and strip it of all the parts to resell on Craigslist…DAMNED!


#145

Hilcorp’s proposed project — building a 23 acre artificial island in the Beaufort Sea — is a very substantial undertaking that would be done by tug and barge.


#146

New Respect for you C. Captain.

Read about this 2 days ago and was wondering if anyone would post it.

Still waiting on the one about oil speculation rising but will see how long that takes. :slight_smile:


#147

[QUOTE=AB Murph;175815]New Respect for you C. Captain.

Read about this 2 days ago and was wondering if anyone would post it.

Still waiting on the one about oil speculation rising but will see how long that takes. :)[/QUOTE]

sorry it took me as long as it did before I found it…I hope I am not losing my rapier edge?


#148

looks like the Noble Discoverer made it in one piece to Singapore. Back where it was before it’s 2015 (no) drilling adventures.


#149

[QUOTE=Drill Bill;177532]looks like the Noble Discoverer made it in one piece to Singapore. Back where it was before it’s 2015 (no) drilling adventures.

She is back at the exact same spot at the Mega Yard as she was moored at last time I saw her and took some pictures. (See post #89)
I would guess Shell had to redeliver to this spot?

The Polar Pioneer will soon be back in Olen, Norway, where she started her Alaska venture as well, more than 1 1/2 year ago.
At least she drill for a few weeks.


#150

I recently heard a story from someone who was supporting the Shell Arctic Alaska drilling project in 2015, and who might (emphasis might) know something.

He claims that: “Shell found what they wanted, but are just waiting for a better regulatory environment before continuing to drill.”

Personally, I really doubt that they found anything. Opinions?


#151

[QUOTE=tugsailor;177544]He claims that: “Shell found what they wanted, but are just waiting for a better regulatory environment before continuing to drill.” [/QUOTE]

then why on earth would they have made such a drastic statement that they found nothing and were leaving for the foreseeable future? They could have said “we found good prospects but the currently climate doesn’t support more effort”? Then they could have exited with a degree of victory which shareholders would have liked. The hemorrhaging of cash would have stopped which also would have pleased them as well. That move would have been win-win except for the pain of getting out of all the big money contracts with the service companies, but that pain would be endurable with the future options left open once things charge in the world and the price of crude recovers.

The only thing that would make any sense would be to try to hide the level of what they found to keep competitors away in the future but those kinds of secrets are hard to keep secret forever.


#152

A failed attempt is bad for shareholders like c.captain said, and also bad when you go to get permission for the future. “You gave up last time and didn’t find anything, why let you go again?”


#153

As in all such cases there were others loosing money here. The partners must have agreed to cut their loos and pull out.
Besides, why did they relinquish the concessions they had paid big money for if they had a potential economical find, even at oil prices at the time, or expected to return sometime in the not too far future??

Not only Shell but Statoil and other partners pulled out of this and other Alaska concessions based on the result and regulatory requirements put forward by the federal government.

Maybe having somebody with actual knowledge and understanding of the risks in charge of regulatory power would have been a good idea, not politicians??

Tugsailor, I think the story you heard is rubbish and that your doubt is well placed.


#154

While in Everett, The disco was visited by quite a few different companies. Most of these companies were asking about hours on the new equipment that had been installed. Other questions included how much steel was in the ship and what certain equipment was made of material wise.


#155

Sounds like the Disco is heading to the chopshop.


#156

[QUOTE=Bayrunner;177572]Sounds like the Disco is heading to the chopshop.[/QUOTE]

MY GOD! Can you imagine the tens (more likely hundreds) of millions that was poured into that antique PIECE OF SHIT that is all now just going to the scrap merchants? What kind of PHUCKING IDIOTS exist there at Shell and at Noble?

don’t bother answering that…I already know the answer


#157

but how can WE profit?


#158

[QUOTE=z-drive;177583]but how can WE profit?[/QUOTE]

it takes money to make money so show me yours first and then I’ll show you mine


#159

I don’t mean literally you and I, but who’s going to buy all that shit and re-sell it? Probably some guy in Singapore with a few discreet connections. Ombuggy perhaps? I’m still bitter that mainecheng never hooked me up with a do-nothing job up there like he promised. Maybe because shell spanked his peepee for posting on here?


#160

[QUOTE=z-drive;177588]I don’t mean literally you and I, but who’s going to buy all that shit and re-sell it?[/QUOTE]

considering that one on my business activities is to buy industrial surplus equipment and resell it, I would love to have had the opportunity to strip the DISCO of all those new Tier III Cat gensets Shell installed in her with the switchgear but only if I could have gotten them for about a dime on the dollar. More than that and the profit margin is small once you take into account the handling, storage and capital costs. It is important to note that there is a market for good condition used equipment that can be used cross industries like electrical, winches or pumps.